According to Crain’s Detroit, on May 1, Crain’s had a roundtable meeting with the Michigan Economic Development Corp. (MEDC). In the meeting there were CEO’s and Presidents from small businesses from industries ranging from publishing to IT and they were all there to talk about supporting entrepreneurship.
According to Crain’s Detroit, The MEDC is in strong support of entrepreneurship in the state for a variety of reasons right now. Two major reasons are: over 50% of Michigan workers are employed by small business and well over 90% of all job growth is through small business currently. The MEDC, much like most of Michigan is realizing the state can no longer depend on the Big three to do much more than take a big #2 on the city, according to John Hughes (who sadly was not quoted in the article).
A big issue that came up in the round table discussion was a lack of bank funding. The article discussed how 50 years ago the bank would lend money to small business and if they went up and smoke, the bank could take that matches that started the fire and any other assets the business had such as machinery and heavy equipment. Now if a company goes up in smoke, their assets pretty much go the same route. With much of the focus of modern business being on information and service rather than production.